2006 #FIFAWorldCup final. France vs Italy.
Zidane (France’s captain) headbutted Italy’s Materazzi & got a red card.
France lost the plot. Italy won.
Emotions can lead to actions we regret. The same is true for investing.
A thread🧵on 5 parallels between the two.
Zidane (France’s captain) headbutted Italy’s Materazzi & got a red card.
France lost the plot. Italy won.
Emotions can lead to actions we regret. The same is true for investing.
A thread🧵on 5 parallels between the two.
• Don’t take your eyes off goals
In football, players have a laser-sharp focus on their objective, that is, to score a goal.
In investing, defining your goals and sticking to them can help you make some crucial investing decisions.
Let’s understand how👇
In football, players have a laser-sharp focus on their objective, that is, to score a goal.
In investing, defining your goals and sticking to them can help you make some crucial investing decisions.
Let’s understand how👇
While investing, it’s extremely tough to decide when you should exit your investments.
If you have a goal-oriented approach, that puzzle is solved.
In addition, you also get a clearer idea about where to invest and how much to invest.
If you have a goal-oriented approach, that puzzle is solved.
In addition, you also get a clearer idea about where to invest and how much to invest.
• Watch out for deceptive moves
In football, players use moves like flip-flap, roulette, and fake shots to confuse opponents.
Similarly, market movements can be unpredictable.
From geopolitics to macroeconomic trends, numerous factors can dictate market direction.
In football, players use moves like flip-flap, roulette, and fake shots to confuse opponents.
Similarly, market movements can be unpredictable.
From geopolitics to macroeconomic trends, numerous factors can dictate market direction.
You are better off if you don’t attempt to time the markets or try predicting its direction.
Instead, you should simply stick to your asset allocation & continue with your regular investments.
This will automatically average out your investments.
Instead, you should simply stick to your asset allocation & continue with your regular investments.
This will automatically average out your investments.
• The right mix of players is key
A good team will have the right mix of forwards, defenders and midfielders.
Likewise, an investment portfolio should have a mix of assets.
👉For example, Flexi Cap and Mid Cap Funds can be your forwards, trying to score goals.
A good team will have the right mix of forwards, defenders and midfielders.
Likewise, an investment portfolio should have a mix of assets.
👉For example, Flexi Cap and Mid Cap Funds can be your forwards, trying to score goals.
Midfielders can be Index Funds, Gold, and Hybrid Funds.
They provide stability to your portfolio.
Defenders and the goalkeeper can be Debt Funds, FDs, and cash.
They will limit losses in your portfolio, especially during turbulent times.
They provide stability to your portfolio.
Defenders and the goalkeeper can be Debt Funds, FDs, and cash.
They will limit losses in your portfolio, especially during turbulent times.
• Take stock during timeouts
Teams use timeouts to review their strategy and change formation, if needed.
The same applies to investing.
You can review your portfolio periodically to assess your investments.
This will help you identify underperformers.
Teams use timeouts to review their strategy and change formation, if needed.
The same applies to investing.
You can review your portfolio periodically to assess your investments.
This will help you identify underperformers.
In case you have deviated from your target asset mix, you can rebalance your portfolio.
For example, say the equity component has risen in value.
You can either book profits or make incremental investments in the debt portion of the portfolio.
For example, say the equity component has risen in value.
You can either book profits or make incremental investments in the debt portion of the portfolio.
• Make the most of penalties and corners
It's tough to score goals. So, teams try to capitalize on corners and penalties.
Similarly, when you get a hike or bonus, it can bolster your finances.
You can use the increased income to pay off debt or step up investments.
It's tough to score goals. So, teams try to capitalize on corners and penalties.
Similarly, when you get a hike or bonus, it can bolster your finances.
You can use the increased income to pay off debt or step up investments.
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So, if you find this useful, show some love.❤️
Please like, share, and retweet the first tweet.
For more threads, follow us.
Also, click on the bell icon in the profile section, so you don't miss any threads.🔔
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